ECONOMIST Gerard Lyons suggested Brexit Britain will be able to sign a good trade deal with Canada without having to "cut and paste" the European Union's CETA template.

The leading economist said the UK needed to be "more optimistic" about the type of post-Brexit trade deal it can agree on with Canada.

Dr Lyons told BBC Daily Politics: "We don’t need to cut and paste because compared to EU countries, the UK is the second biggest service sector in the world, so we need to be approaching this with a fresh mind.

"The UK in terms of services can actually really push to reduce non-tariff barriers in services.

GETTY/BBC

Dr Lyons said the UK needs to be more optimistic about its future trade deal with Canada

"Therefore it’s not so much replicating the EU-Canada deal but being more proactive."

Dr Lyons, who once served as economic advisor to Boris Johnson, made his comments hours after Canadian Prime Minister Justin Trudeau said Canada was ready and waiting to trade freely with the UK after Brexit.

He said the Ceta agreement in place between the EU and Canada would be a good basis for a transitional deal but that the new agreement with the UK would include several "improvements."

Mr Trudeau said: "As the UK has demonstrated time and time again its support for this trade measure, we will be able to move forward in a way that benefits in a smooth transition that keeps the essence of Ceta applicable to the UK in ways that will respects the EU's requirements and rules.

"We are very confident we will be able to continue the strong trade ties and relationship with the UK throughout the period of transition.

“Ceta is not fully aligned with Canada and UK’s priorities [but it acts] as a strong basis for a smooth transition Ceta is perfectly designed.”

The Ceta agreement signed by Brussels will make it easier to export goods and services between the EU and Canada.

Mrs May echoed Mr Trudeau's comments, saying: "We want to ensure that when we leave the European Union, for businesses and people, that change is as smooth and orderly as possible.

"And working on Ceta as becoming the first of the bilateral trade relationships between the UK and Canada that means that seamless transition can take place.